Could you direct me to the Illinois Revised Uniform Unclaimed Property Act language that shortens the presumed abandonment period to three years for demand, savings, or time deposit accounts? Also, are there changes regarding gift cards or reloadable cards?

Demand, Savings and Time Deposit Accounts

The Illinois Revised Uniform Unclaimed Property Act (RUUPA), which becomes effective on January 1, 2018, changes the presumed abandonment period for many types of property, including demand, savings and time deposit accounts. The relevant section is copied and linked to in our resources below.

Gift Cards

The Illinois RUUPA excludes gift cards from its scope. The law applies only to unclaimed property, and it expressly excludes gift cards from the definition of “property.” A gift card is excluded only if it meets the Illinois RUUPA’s definition of “gift card”; for example, a gift card with an expiration date would not fit the Illinois RUUPA’s “gift card” definition and would not qualify for an exclusion.

Stored-Value Cards

The Illinois RUUPA does apply to “stored-value cards,” a term that encompasses reloadable cards as they are commonly understood. The presumed abandonment period for stored-value cards is three years. Note that payroll cards are treated as wages, for which the presumed abandonment period is one year.

Possible Changes

Note that the Illinois Treasurer’s office is planning to draft trailer legislation that would amend the Illinois RUUPA before its effective date on January 1, 2018. In discussions with the Illinois Treasurer’s office, the IBA has identified concerns with the definitions of stored-value cards, payroll cards and gift cards, as well as the presumed abandonment periods for deposit accounts and payroll cards, among several other concerns. The Illinois Treasurer’s office also is planning to draft administrative rules implementing the Illinois RUUPA. Stay tuned for possible changes, whether through legislative action or administrative rules.

For resources related to our guidance, please see:

Effective January 1, 2018, Revised Uniform Unclaimed Property Act, 765 ILCS 1026/15-201(6) (“Subject to Section 15-210 [where there is an indication of interest in the property], the following property is presumed abandoned if it is unclaimed by the apparent owner during the period specified below: . . . (6) a demand, savings, or time deposit, 3 years after the later of maturity or the date of the last indication of interest in the property by the apparent owner, except for a deposit that is automatically renewable, 3 years after its initial date of maturity unless the apparent owner consented in a record on file with the holder to renewal at or about the time of the renewal.”)

Effective January 1, 2018, Revised Uniform Unclaimed Property Act, 765 ILCS 1026/15-102(24) (“‘Property’ means tangible property . . . . The term: (C) does not include: . . . (iii) a gift card.”)

Effective January 1, 2018, Revised Uniform Unclaimed Property Act, 765 ILCS 1026/15-102(11) (“‘Gift card’ means (A) a stored-value card: (i) issued on a prepaid basis in a specified amount; (ii) the value of which does not expire; (iii) that is not subject to a dormancy, inactivity, or service fee; (iv) that may be decreased in value only by redemption for merchandise, goods, or services upon presentation at a single merchant or an affiliated group of merchants; (v) that, unless required by law, may not be redeemed for or converted into money or otherwise monetized by the issuer; . . .”)

Effective January 1, 2018, Revised Uniform Unclaimed Property Act, 765 ILCS 1026/15-102(30) (“‘Stored-value card’ means a record evidencing a promise made for consideration by the seller or issuer of the record that goods, services, or money will be provided to the owner of the record to the value or amount shown in the record. . . .”)

Effective January 1, 2018, Revised Uniform Unclaimed Property Act, 765 ILCS 1026/15-201(15) (“Subject to Section 15-210 [where there is an indication of interest in the property], the following property is presumed abandoned if it is unclaimed by the apparent owner during the period specified below: . . . (15) property not specified in this Section or Sections 15-202 through 15-208, the earlier of 3 years after the owner first has a right to demand the property or the obligation to pay or distribute the property arises.”)

Effective January 1, 2018, Revised Uniform Unclaimed Property Act, 765 ILCS 1026/15-102(30) (“‘Payroll card’ means a record that evidences a payroll-card account as defined in Regulation E, 12 CFR Part 1005, as amended.”)

Effective January 1, 2018, Revised Uniform Unclaimed Property Act, 765 ILCS 1026/15-201(13) (“Subject to Section 15-210 [where there is an indication of interest in the property], the following property is presumed abandoned if it is unclaimed by the apparent owner during the period specified below: . . . (13) . . . amounts held on a payroll card, one year after the amount becomes payable.”)